The Board of Directors of Life Insurance Corporation of India (“LIC”) approved and adopted the standalone and consolidated financial results for the six months ending September 30th, 2024. Below are the key highlights of our standalone results.
The Profit after Tax (PAT) for the half year ended September 30th, 2024 was Rs. 18,082 crore as compared to Rs. 17,469 crore for the half year ended September 30th, 2023 registering a growth of 3.51%.
In terms of market share measured by First Year Premium Income (FYPI) (as per IRDAI), LIC continues to be the market leader in Indian life insurance business with overall market share of 61.07% for half year ended September 30th 2024 as compared to 58.50% for half year ended September 30th 2023. For the half year ended September 30th, 2024, LIC had a market share of 39.79% in Individual business and 74.77% in the Group business.
The Total Premium Income for six months period ended September 30th, 2024 was Rs. 2,33,671 crore as compared to Rs. 2,05,760 crore for the six months period ended September 30th 2023, registering a growth of 13.56%.
Individual New Business premium income for six months period ended September 30th, 2024 was Rs. 29,538 crores as compared to Rs 25,184 crore for the six months period ended September 30th 2023, registering an increase of 17.29%. The Individual Renewal premium income for six months period ended September 30th, 2024 was Rs. 1,15,158 crores as compared to Rs 1,09,599 crore for the six months period ended September 30th 2023, registering an increase of 5.07%. The Total Individual Business Premium for the six months period ended September 30th, 2024 increased to Rs. 1,44,696 crore from Rs. 1,34,783 crore for the comparable period of previous year, registering an increase of 7.35%.
The Group Business total premium income for six months period ended September 30th, 2024 was Rs. 88,975 crores as compared to Rs 70,977 crore for the six months period ended September 30th 2023, registering an increase of 25.36%.
A total of 91,70,420 policies were sold in the individual segment during the six months period ended September 30th, 2024 as compared to 80,60,725 policies sold during the six months period ended September 30th 2023, registering a growth of 13.77%. On an Annualized Premium Equivalent (APE) basis, the total premium was Rs. 28,025 crore for the six months period ended September 30th, 2024. Of this 64.81% (Rs. 18,163 crore) was accounted for by the Individual Business and 35.19% (Rs. 9,862 crore) by the Group Business. Within the Individual Business, the share of Par products on APE basis was 73.69% (Rs. 13,385 crore) and balance 26.31% (Rs. 4,778 crore) was due to Non Par products. The Individual Non Par APE has increased to Rs. 4,778 crore for the six months period ended September 30th, 2024 from Rs. 1,575 crore for the six months period ended September 30th, 2023 registering a growth of 203.37%. Therefore on APE basis, our Non Par share of Individual business has increased to 26.31% for the six months period ended September 30th, 2024, as compared to 10.76% for the six months period ended September 30th, 2023.
The Value of New Business (VNB) for the six months period ended September 30th, 2024 was Rs. 4,551 crore as compared to Rs. 3,304 crore for the six months period ended September 30th, 2023, registering a growth of 37.74%. The Net VNB margin for the six months period ended September 30th, 2024 increased by 160 bps to 16.2% as compared to 14.6% for the six months period ended September 30th, 2023.
The Indian Embedded Value (IEV) as on September 30th,2024 has been determined as Rs. 8,21,716 crore as compared to Rs. 6,62,605 crore as on September 30th, 2023 registering an increase of 24.01% over the previous year.
The Solvency Ratio as on September 30th, 2024 increased to 1.98 as against 1.90 on September 30th, 2023.
For the six months period ended September 30th, 2024, the persistency ratios on premium basis for the 13th month and 61st month were 77.62% and 61.46%, respectively. The comparable persistency ratios for the corresponding period ended September 30th, 2023 were 78.49% and 62.53%, respectively. For the six months period ended September 30th, 2024, the persistency ratios on number of policies basis for the 13th month and 61st month were 67.23% and 48.92%, respectively.
The comparable persistency ratios for the corresponding period ended September 30th, 2023 were 66.80% and 50.35%, respectively.
The Assets Under Management (AUM) increased to Rs. 55,39,516 crore as on September 30th, 2024 as compared to Rs. 47,43,389 crore on September 30th, 2023 registering an increase of 16.78% year on year.
The Overall Expense Ratio for the six months period ended September 30th, 2024 decreased by 240 bps to 12.74% as compared to 15.14% for the six months period ended September 30th 2023.
The Yield on Investments on policyholders funds excluding unrealized gains was 9.02% for the six months period ended September 30th, 2024 as against 9.06% for six months period ended September 30th, 2023.
Siddhartha Mohanty, CEO & MD, LIC said, “During the first half of this year (FY 2024-25), LIC has been successful in delivering holistic growth on various business parameters such as market share, premium, Non par share within Individual business, VNB, VNB Margin and Embedded Value. Our market share for H1FY25 has increased to 61.07% as compared to 58.50% for the same period of previous year and 58.87% for the full year ended March 31, 2024. Further we have been consolidating our gains in terms of changing our product mix. The Non Par APE share of Individual business for H1FY25 now stands at 26.31% as compared to 10.76% for the similar period of previous year. Our margin trajectory is on the upswing and our VNB margin for H1FY25 is 16.2% as compared to 14.6% for similar period last year. Our strategy on enhancing market share alongwith changes in product and channel mix, without compromising on profitability, is yielding very visible results. Further we have aligned our products with the new regulatory guidelines by redesigning them in such a manner that the interest of customers, shareholders and various marketing channel partners are taken care of. At LIC we are confident that all such changes which are friendly to customers will eventually expand the life insurance market in the country. We are committed to continue to play a significant role in the further development of the life insurance market with the support of all our stakeholders.”